Quantcha now offering unlimited commission-free options trading.

Quantchabot has detected a promising Bear Put Spread trade opportunity for ZYNGA (ZNGA) for the 5-Mar-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ZNGA was recently trading at $12.12 and has an implied volatility of 43.04% for this period. Based on an analysis of the options available for ZNGA expiring on 5-Mar-2021, there is a 33.92% likelihood that the underlying will close within the analyzed range of $11.13-$12.11 at expiration. In this scenario, the average linear return for the trade would be 40.58%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, ZYNGA was recently trending, indicating that breaking news and/or market activity has significantly impacted sentiment toward the stock. This movement can be interpretted as a sign of more near-term price movement for the underlying.

Trade approach: The recent sentiment change in ZNGA on StockTwits appears to be significantly negative, indicating that the stock is likely to follow in that direction for investors trading on sentiment. As a result, a bearish strategy could prove effective if the sentiment ultimately turns out to drive trading.

Upside potential: Using this bearish strategy, the trade would be profitable if ZYNGA closed at or below $12.15 on 5-Mar-2021. Based on our analysis, there is a 51.14% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.